Caterpillar's Q2 adjusted operating margin rebounds to 21.9%

Earnings
โดย Zacks Investment Research·US·Read original
Summary · why it matters

Caterpillar reported a sharp year-over-year improvement in adjusted operating margin in the second quarter of 2026, expanding about 430 basis points to 21.9%, the first such improvement since the second quarter of 2024. The gain came despite an 18% rise in cost of sales and higher SG&A and R&D expenses, as higher sales volumes and favorable pricing more than offset cost pressures, and the quarter included $392 million of expected IEEPA tariff recoveries. Management now expects full-year 2026 tariff costs of about $2.2 billion, excluding any additional IEEPA tariff recoveries in the second half, and has raised its 2026 outlook to mid-to-high teens sales growth from low-double-digit growth. The Zacks Consensus Estimate calls for 2026 revenues of approximately $78.8 billion, implying an adjusted operating margin near the lower end of Caterpillar's 18-22% target range, up from 17.2% in 2025. Among peers, Terex reported a slight decline in operating margin to 10.9% and Komatsu reported 14.5% for the April-June quarter, both citing tariff headwinds.

Impact on stocks 3

Energy Transition & Power Demand▲ · 1 stocks
Caterpillar Inc
CAT
▲ PositiveCapitalrelevance

Adjusted operating margin improved to 21.9% and 2026 outlook raised to mid-to-high teens sales growth.

Robotics & Physical AI▼ · 1 stocks
Komatsu Ltd.
6301
▼ NegativeTariffrelevance

Komatsu reported 14.5% operating margin for April-June, citing tariff headwinds.

Industrials▼ · 1 stocks
Terex Corporation
TEX
▼ NegativeTariffrelevance

Terex reported a slight decline in operating margin to 10.9%, citing tariff headwinds.

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